If you downloaded the 2021 Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs), before February 23, 2022, please note the following revisions. On page 2, under the "Reminders" section, the text has been revised to read the following. Taxable non-tuition fellowship and stipend payments. For tax years beginning after 2019, taxable non-tuition fellowship and stipend payments paid to you to aid you in the pursuit of graduate or postdoctoral study are treated as taxable compensation for the purpose of IRA contributions. For more information, see Wages, salaries, etc., later. On page 6, under the "What Is Compensation?" section, the text has been revised to read the following. Wages, salaries, etc. Wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services are compensation. The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified TIP plans). A scholarship or fellowship is generally taxable compensation only if it is in box 1 of your Form W-2. However, for tax years beginning after 2019, certain non-tuition fellowship and stipend payments not reported to you on Form W-2 are treated as taxable compensation for IRA purposes. These amounts include taxable non-tuition fellowship and stipend payments made to aid you in the pursuit of graduate or postdoctoral study and included in your gross income under the rules discussed in chapter 1 of Pub. 970, Tax Benefits for Education. On page 6, under the "What Is Compensation?" section, the text has been revised to read the following. Graduate or postdoctoral study. A scholarship or fellowship is generally taxable compensation only if it is in box 1 of your Form W-2, Wage and Tax Statement. How-ever, for tax years beginning after 2019, certain non-tuition fellowship and stipend payments not reported to you on Form W-2 are treated as taxable compensation for IRA purposes. These amounts include taxable non-tuition fellowship and stipend payments made to aid you in the pursuit of graduate or postdoctoral study and included in your gross income under the rules discussed in chapter 1 of Pub. 970, Tax Benefits for Education.
